Employee shares information to competitors?

[Davidl]

This is only hypothetical. How would you deal or prevent an employee thats in charge or something
that is a kept secret. For instance you are working on a product thats new to the market, new technology and the person decides to take it and create it himself. I hear this happens a lot with small businesses that present ideas to big corporations and they just manufacture it themselves.

Is there anything that you have your employee or another business you are working with sign so that they can't work with competitors or take your idea and share it? What is this process or agreement called?

[David Hunter]

Hmm... not sure, but maybe have them sign a non-compete agreement.

In reality, there's really nothing you can do to stop someone from doing anything.

[billbenson]

This is lawyer time. If employees have access to confidential information that can hurt you and its possible to have them sign a document holding them accountable I'd do that.

[BizAdvisor]

A non-disclosure agreement would prevent employees from exposing confidential information to others. A non-compete agreement would prevent them from using the confidential information themselves.

[nealrm]

A Non-disclosure contract doesn't prevent anything, it does however allow you to collect monetary compensation for the disclosure. Non-compete can be a little stronger depending on the state. As a general rule of thumb that can't prevent someone from uses there skills to seek employment.

Really the best approach is to make sure that the people that you hire are honest and well compensated.